Banking is core financial sector of a nation or country. Banking sector plays an important role in money market as well in capital market. It is just a few decades back when banking came into existence, but now it is increasing with enormous speed. All banking operations accomplish by banks.

Banking is core financial sector of a nation or country. Banking sector plays an important role in money market as well in capital market. It is just a few decades back when banking came into existence, but now it is increasing with enormous speed. All banking operations accomplish by banks. Banks are mainly two types:

1.Commercial banks
2.Central banks

1.      Commercial bank: – this bank is a financial institution, which deals with money and credit. It accepts deposits to those who need them and helps in remittance of money from one place to another. These banks deal in money and credit for earning profit, or e.g. Punjab national bank, Bank of India are commercial bank. The main function of commercial bank is as follow:
a. the first important function of a commercial bank is to accept deposit from public. 
b. The second function is advancing of loans.
c. The third function of credit creation.

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These banks also play important role in general utility and social development functions.

2.      Central bank: – central bank is supreme monetary institution responsible, for controlling the entire banking system of a country. It is the sole and monopoly agency of note issuing in a country. Central bank manages currency and credit policy of the country. It acts as a banker of government. For e.g. Reserve bank of India in India, Federal Reserve System in America. It is an apex institution of the monetary and banking system of the country. Central bank designs the monetary policy of the country. To control the credit the instruments like bank rate, cash reserve ratio, statutory liquidity ratio, and rationalizing of credit are use by central bank.

  In end, the central as well as commercial banks together make the banking structure of a country or nation, without banking sector no country can handle or controls its financial sector, banking sector increase the accuracy in financial position of a country. Banking structure of a nation or country provides a better track for its development. Thus banking structure is need for development of a nation as the one leg is need for walking.